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Molina (MOH) Outpaces Stock Market Gains: What You Should Know

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Molina (MOH - Free Report) closed at $142.87 in the latest trading session, marking a +1.08% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.58%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq gained 0.48%.

Coming into today, shares of the provider of Medicaid-related services had gained 4.88% in the past month. In that same time, the Medical sector gained 3.02%, while the S&P 500 gained 3.62%.

Wall Street will be looking for positivity from MOH as it approaches its next earnings report date. On that day, MOH is projected to report earnings of $2.56 per share, which would represent year-over-year growth of 13.78%. Our most recent consensus estimate is calling for quarterly revenue of $4.08 billion, down 16.49% from the year-ago period.

MOH's full-year Zacks Consensus Estimates are calling for earnings of $10.93 per share and revenue of $16.39 billion. These results would represent year-over-year changes of +3.02% and -13.24%, respectively.

Any recent changes to analyst estimates for MOH should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. MOH currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, MOH is currently trading at a Forward P/E ratio of 12.93. For comparison, its industry has an average Forward P/E of 14.89, which means MOH is trading at a discount to the group.

Meanwhile, MOH's PEG ratio is currently 0.98. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MOH's industry had an average PEG ratio of 1.03 as of yesterday's close.

The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 18, which puts it in the top 8% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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